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Simplex Castings Ltd.

BSE: 513472 Sector: Engineering
NSE: SIMPLEXCAS ISIN Code: INE658D01011
BSE 14:01 | 09 Feb 44.20 -0.80
(-1.78%)
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NSE 05:30 | 01 Jan Simplex Castings Ltd
OPEN 44.10
PREVIOUS CLOSE 45.00
VOLUME 704
52-Week high 54.75
52-Week low 32.60
P/E 4.64
Mkt Cap.(Rs cr) 27
Buy Price 44.25
Buy Qty 100.00
Sell Price 46.50
Sell Qty 100.00
OPEN 44.10
CLOSE 45.00
VOLUME 704
52-Week high 54.75
52-Week low 32.60
P/E 4.64
Mkt Cap.(Rs cr) 27
Buy Price 44.25
Buy Qty 100.00
Sell Price 46.50
Sell Qty 100.00

Simplex Castings Ltd. (SIMPLEXCAS) - Auditors Report

Company auditors report

TO THE MEMBERS OF SIMPLEX CASTINGS LIMITED

Report on the Audit of Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of M/sSIMPLEX CASTINGS LIMITED (CIN: L27320MH1980PLC067459) ("the Company") whichcomprises the Balance Sheet as at March 31 2022 the Statement of Profit and Loss(including Other Comprehensive Income) Statement of Changes in Equity & Statement ofCash flows for the year then ended and notes to the financial statements including asummary of significant accounting policies and other explanatory information(hereinafterreferred to as the "standalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 ('Act') in the manner so required and give a true and fair viewin conformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS) and other accounting principles generally accepted in India of the state of affairsof the Company as at March 312022 and the Profit and total comprehensive income changesin equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

1. Attention is drawn to Note No. 43 which refers to the write down invalue of semi-finished goods manufactured for export to customer of Ukraine.

Key audit matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

We have determined the matters described below to be the key auditmatters to be communicated in our report.

Sr. No. Key Audit Matters How our audit addressed the Key Audit Matter
1 VALUATION OF INVENTORIES: Our Audit Procedure:
The net carrying value of inventory as on 31st March 2022 is 39.63% of total assets of the company. To address the risk of material error on inventories our audit procedures included amongst other:
Inventories were considered as a key audit matter due to the size of the Balance sheet and because inventory valuation involves management judgement. According to financial statements accounting principles inventories are measured at the lower of cost or net realizable value. The company has segment and region-specific procedures for identifying risk for obsolescence and measuring inventories at the lower of cost or net realizable value.
• Assessing the compliance of company's accounting policies over inventory with applicable IND AS.
• Assessing the effectiveness of key controls at the inventory storage location.
• Relying on the report of stock audit conducted during the year by external agencies appointed by lender banking institutions.
RELATED DISCLOSURES:
Please refer to Note-2.3 (i) for details of the accounting policies of inventories and Note-11 of notes to financial statements for relevant disclosures of inventories. • Relying on the Physical verification conducted by management at the end of the year.

Information other than the Financial Statements and Auditor'sReport thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annual Reportbut does not include the financial statements and our auditor's report thereon. TheAnnual Report is expected to be made available to us after the date of this auditor'sreport.

Our opinion on the financial statements does not cover the otherinformation and we will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

When we read the Annual Report if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance.

Management's Responsibilities for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process. Auditor's Responsibility for the Auditof the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

2. Obtain an understanding of internal controls relevant to the auditin order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

3. Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143of the Companies Act 2013 are given in the Annexure A on the mattersSpecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. A. As required by Section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply with theIND AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e. On the basis of the written representations received from thedirectors as on 31 st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164 (2) of the Act.

f. With respect to the adequacy of the internal financial controlsoverfinancial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in ‘Annexure B'; and

B. With respect to the other matters to be included in theAuditor's Report in accordance with Section 197 (16) of the Act as amended:

a. In our opinion and to the best of our information and according tothe explanations given to us the remuneration paid by the Company to its directors duringthe year is in with accordance with the provisions of Section 197 of the Act; and

b. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

c. the Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Note 31 to thestandalone financial statements;

ii. the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and

iii. there has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company

d. i. The management has represented that to the best of its knowledgeand belief as disclosed in Note 35 to the standalone financial statements no funds havebeen advanced or loaned or invested (either from borrowed funds or share premium or anyother sources or kind of funds) by the Company to or in any other persons or entitiesincluding foreign entities ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall:

directly or indirectly lend or invest in other persons or entitiesidentified in any manner

whatsoever ("Ultimate Beneficiaries") by or on behalf of theCompany or

provide any guarantee security or the like to or on behalf of theUltimate Beneficiaries.

ii. The management has represented that to the best of its knowledgeand belief as disclosed in Note 35 to the standalone financial statements no funds havebeen received by the Company from any persons or entities including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall:

- directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalfof the Funding Party or

- provide any guarantee security or the like from or on behalf of theUltimate Beneficiaries.

iii. Based on such audit procedures as considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (d) (i) and (d) (ii) contain anymaterial misstatement.

e. Company has not declared or paid any dividend during the year.

C. With respect to the matter to be included in the Auditor'sReport under Section 197(16) of the Act:

In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) ofthe Act which are required to be commented upon by us.

Bhilai dated: 28 May 2022 For APAS & Co. LLP
Chartered Accountants
(FRN- 000340C/C400308)
RAJDEEP SINGH
Partner
(Membership No. 415549)
UDIN-22415549AJUTWH2959

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

1.

A. i) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.

ii) The Company has maintained proper records showing full particularsof intangible assets.

<p >B. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has a regularprogramme of physical verification of its Property Plant and Equipment by which allproperty plant and equipment are verified in a phased manner over a period of threeyears. In accordance with this programme certain property plant and equipment wereverified during the year. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such verification.

C. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties (other than immovable properties where the Company is the lessee and the leaseagreements are duly executed in favour of the lessee) disclosed in the standalonefinancial statements are held in the name of the Company

D. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not revalued itsProperty Plant and Equipment (including Right of Use assets) or intangible assets or bothduring the year.

E. According to information and explanations given to us and on thebasis of our examination of the records of the Company there are no proceedings initiatedor pending against the Company for holding any benami property under the Prohibition ofBenami Property Transactions Act 1988 and rules made thereunder.

2. A. As explained to us the physical verification of inventories havebeen conducted at reasonable intervals by the management during the year. In our opinionthe frequency of the verification is reasonable. The discrepancies noticed on verificationbetween the physical stocks and the book records were not material and have been properlydealt with in the books of account.

B. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has been sanctionedworking capital limits in excess of five crore rupees in aggregate from banks orfinancial institutions on the basis of security of current assets. In our opinion thequarterly returns or statements filed by the Company with such banks or financialinstitutions are in agreement with the books of account of the Company.

3. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not provided anyguarantee or security or granted any loans or advances in the nature of loans secured orunsecured to companies firms limited liability partnership or any other parties duringthe year. The Company has not made any investments in firms limited liability partnershipor any other parties. Accordingly clause 3(iii)(a) and clause 3(iii)(c) to clause3(iii)(f) of the Order are not applicable to the Company.

4. According to the information and explanations given to us and on thebasis of our examination of the records the Company has not given any loans or providedany guarantee or security as specified under section 185 and 186 of the Companies Act2013. In respect of the investments made by the Company the provisions of section 186 ofthe Companies Act 2013 have been complied with.

5. The Company has not accepted any deposits or amounts which aredeemed to be deposits from the public. Accordingly clause 3(v) of the Order is notapplicable.

6. We have broadly reviewed the books of accounts maintained by theCompany pursuant to the rules prescribed by the Central Government for maintenance of costrecords under Section 148(1) of the Companies Act 2013 in respect of its manufacturedgoods and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. However we have not carried out a detailed examination of therecords with a view to determine whether these are accurate or complete.

7. a. According to the information and explanations given to us and onthe basis of our examination of the records of the Company amounts deducted / accrued inthe books of account in respect of undisputed statutory dues including Goods and ServicesTax (‘GST') Provident fund Income-Tax Duty of Customs Cess and otherstatutory dues have been regularly deposited by the Company with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of Goods and Services Tax (‘GST') Provident fundIncome-Tax Duty of Customs Cess and other statutory dues were in arrears as at 31 March2022 for a period of more than six months from the date they became payable. As explainedto us the provisions of employee state insurance are not applicable to the Company.

b. According to the records of the company the dues outstanding ofincome tax sales tax wealth-tax Service-tax Customs duty excise duty and cess onaccount of any dispute are as follows:

Name of Statute Nature of dues Amount(Rs. In Lacs) Period to which Amount relates Forum where dispute pending
Income Tax Act 1961 Income Tax demand 977.34 AY 2010-11 At High Court Mumbai

8. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not surrendered ordisclosed any transactions previously unrecorded as income in the books of account inthe tax assessments under the Income Tax Act 1961 as income during the year.

9. a. According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not defaultedin the repayment of loans or other borrowings or in the payment of interest thereon to anylender during the year.

b. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not been declareda willful defaulter by any bank or financial institution or government or governmentauthority.

c. To the best of our knowledge and belief in our opinion term loansavailed by the Company were applied by the Company during the year for the purposes forwhich the loans were obtained.

d. According to the information and explanations given to us and on anoverall examination of the balance sheet of the company we report that no funds raised onshort-term basis have been used for long-term purposes by the company.

e. According to the information and explanations given to us and on anoverall examination of the financial statements of the company we report that the companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiary as defined under Companies Act 2013. The Company does not hold anyinvestment in any associate companies or joint ventures as defined under Companies Act2013.

f. According to the information and explanations given to us andprocedures performed by us we report that the company has not raised loans during theyear on the pledge of securities held in its subsidiary as defined under Companies Act2013. The Company does not hold any investment in any associate companies or jointventures as defined under Companies Act 2013.

10. (a) The Company has not raised any moneys by way of initial publicoffer or further public offer (including debt instruments). Accordingly clause 3(x)(a) ofthe Order is not applicable to the Company.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly clause 3(x)(b) of the Order is not applicable.

11. (a) Based on examination of the books and records of the Companyand according to the information and explanations given to us no fraud by the Company oron the Company has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us noreport under sub-section (12) of Section 143 of the Companies Act 2013 has been filed bythe auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government.

(c) As represented to us by the management there are no whistle blowercomplaints received by the Company during the year.

12. According to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly clause 3(xii) of the Order is not applicable.

13. In our opinion and according to the information and explanationsgiven to us the transactions with related parties are in compliance with Section 177 and188 of the Companies Act 2013 where applicable and the details of the related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. (a) Based on information and explanations provided to us and ouraudit procedures in our opinion the Company has an internal audit system commensuratewith the size and nature of its business.

(b) We have considered the internal audit reports of the Company issuedtill date for the period under audit.

15. In our opinion and according to the information and explanationsgiven to us the Company has not entered into any non-cash transactions with its directorsor persons connected to its directors and hence provisions of Section 192 of theCompanies Act 2013 are not applicable to the Company.

16. (a) & (b) The Company is not required to be registered underSection 45-IA of the Reserve Bank of India Act 1934. Accordingly clause 3(xvi)(a) andclause 3(xvi)(b) of the Order is not applicable.

(c) &(d) The Company is not a Core Investment Company (CIC) asdefined in the regulations made by the Reserve Bank of India. Accordingly clause3(xvi)(c) and clause 3(xvi)(d) of the Order is not applicable.

17. The Company has not incurred cash losses in the current and in theimmediately preceding financial year.

18. There has been no resignation of the statutory auditors during theyear. Accordingly clause 3(xviii) of the Order is not applicable.

19. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that this is not an assurance as to the future viability ofthe company. We further state that our reporting is based on the facts up to the date ofthe audit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the company as and when they fall due.

20. In our opinion and according to the information and explanationsgiven to us there is no unspent amount under sub-section (5) of section 135 of theCompanies Act 2013 pursuant to any project. Accordingly clauses 3(xx)(a) and 3(xx)(b) ofthe Order are not applicable.

ForAPAS &Co. LLP
Chartered Accountants
(FRN- 000340C/C400308)
RAJDEEP SINGH
Partner
(Membership No. 415549)
UDIN-22415549AJUTWH2959
Bhilai dated: 28 May 2022

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF SIMPLEX CASTINGS LIMITED

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We were engaged to audit the internal financial controls over financialreporting of Simplex Castings Limited("the Company") as of March 31 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on my/our audit conducted in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing to the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error.

We believe that Audit evidence we have obtained is sufficient andappropriate audit evidence to provide a basis for an audit opinion on internal financialcontrols system over financial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2022 basedon the internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the Guidance Note on"Audit of Internal Financial Controls Over Financial Reporting" issued by theInstitute of Chartered Accountants of India.

For APAS & Co. LLP
Chartered Accountants
(FRN- 000340C/C400308)
RAJDEEP SINGH
Partner
(Membership No. 415549)
UDIN-22415549AJUTWH2959
Bhilai dated: 28 May 2022

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